Company Number: 12749874

Analysis Date: 2025-07-29 19:03 UTC

1. Risk Rating: MEDIUM
   Justification: The company is currently active with timely filings and no overdue accounts or confirmation statements, which supports compliance and operational continuity. However, there is a notable decline in net assets and working capital from prior years, signaling potential solvency and liquidity risks that merit caution.

2. Key Concerns:

• Declining Net Assets: Net assets dropped sharply from £23,881 in 2023 to £6,903 in 2024, indicating potential erosion of equity and financial buffer.
• Reduced Working Capital: Net current assets fell from £19,929 in 2023 to £1,853 in 2024, suggesting tighter liquidity and a reduced ability to meet short-term obligations comfortably.
• Increasing Long-Term Creditors: Creditors due after one year remain significant (£10,950 in 2024), reducing net asset value and potentially indicating debt burden or financing constraints.

3. Positive Indicators:

• Timely Filing Compliance: No overdue accounts or confirmation statement filings; demonstrates regulatory compliance and governance awareness.
• Stable Employee Base: Consistent workforce size (2 employees) indicates operational stability and controlled cost base.
• Active Website and Market Presence: The company maintains an active website with contact details, supporting ongoing business activity and client engagement.

4. Due Diligence Notes:

• Investigate the cause of the sharp decrease in net assets and working capital between 2023 and 2024, including profitability trends and any extraordinary expenses or write-downs.
• Review the composition and terms of long-term creditors to assess refinancing risk or covenant pressures.
• Examine cash flow statements (if available) to evaluate operational cash generation and liquidity management.
• Verify any contingent liabilities or off-balance sheet commitments that might affect solvency.
• Confirm the directors’ plans to address the declining equity base and ensure sustainable operations.